LOSCH THEORY

SAFOORA KH K.V.ABHISHEK

An Introduction to Central Space Theory

The theory was originally published in 1933 by a

German geographer Walter Christaller who studied the

settlement patterns in southern Germany.

Assumptions:

Christaller made a number of assumptions such as:

All areas have

• an isotropic (all flat) surface

• an evenly distributed population

• evenly distributed resources

• similar purchasing power of all consumers and consumers will patronize nearest

market

• transportation costs equal in all directions and proportional to distance

• no excess profits (Perfect competition)

Details of the theory

The theory consists of two basic concepts:

• threshold

-- the minimum population that is required to bring about the provision of certain

good or services

• range of good or services

-- the average maximum distance people will travel to purchase goods and

services.

Details of the theory

As transport is equally easy in all

direction, each central place will

have a circular market area as

shown in C in the following diagram:

However, circular shape of the

market areas results in either un-

served areas or over-served areas.

To solve this problem, Christaller

suggested the hexagonal shape

of the markets as shown in D in the

above diagram.

Criticism:

1. Applicable only to service sector which is only a part of the total economy.

2. The hierarchy system would be distorted by the location of primary or manufacturing

industry.

3. The assumption that the consumer will act rationally and patronize the nearest center is

not correct.

4. Most criticized for its static and descriptive nature, as it deals with its relationship

between centers and their hinterlands only at one point of time, but fails to take into

account

the evolutionary process of spatial structure i.e. how the structure has evolved and might

change in future.

Modifications in the Central Place Theory:

August Losch model postulated that there is one superior centre where all goods

are produced. The size of the centers increases with distance form the central place and

those small centers tend to be located about half way in between larger ones

Losch considered that the size of the hexagon not only in relation to a geographical centre,

but also, in relation to the goods produced. Thus a particular centre may have several

hexagonal markets for its different products as transport cost is a function of distance

THREE BASIC STEPS IN LOSCH’S ANALYSIS WERE AS FOLLOWS

1. TO FIND THE OPTIMAL DENSITY OF URBAN PLACES (OF ALL SIZES)IN A GIVEN

AREA.

2. TO SHOW THAT THIS SYSTEM OF SETTLEMENTS,REPRESENTED BY POINTS,FORMS

A PLACE LATICE

3. TO SHOW THAT DEMAND IS MAXIMIZED AT EACH PLACE IF THE SURROUNDING

MARKET AREAS ARE HEXAGONAL.

To explain his theory August Losch made the following assumptions.

1) An isotropic plane – a homogeneous land surface with respect to population distribution,

standard of living, demand and production.

2) In that plane, transportation costs are proportional to the distance.

3) In that situation, the shape and size of the market area will depend upon the price of the

product and the rate of transportation costs.

The selection of hexagonal network of market based on a 60 degree (sixfold)

Plana latice is essentialy the function of space filling requirements of the central place

theory

• Each function form its

own latice of market

superimposed on latice

of other function

Nesting of tributary areas

K=3

K=1+1/2(0)+1/3(6)=3 K=4

K=1+1/2(6)+1/3(0)=4

K=7

K=7+1/2(0)+1/3(0)=7

Distance relation in a christaller k=3 network 2 2 2

BD =AD +AB -2AD.Abcosine<DAB

BD=√3.AB

Distance relations in loschian system

AC=x

AD=x √3

AB=3X

A

C

D B

Distance relations in a loschian system

• In contrast to christaller who discussed mainly the network of degree 3 ,losch

argue in more general terms.

• The above figure in which there is an urban place A serving an equivalent of

9 customers including itself

• If we considerd the basic distance of original settlement to be x again then

AB= 3x

• Which in terms represented as x √n

where n is the total number of equivalent customers served by a place

Regional Level K=3 K=4 K=7

1 x√31 x√41

x√71

2 x√32

x√42

x√72

3 x√33

x√43

x√73

4 x√34

x√44

x√74

5 x√35

x√45

x√75

6 x√36

x√46

x√76

7 x√37

x√47

x√77

The ten smallest economic areas Losch’s

scheme.The sectors containing many

towns are hatched. Alternative regional

centers are in paranthesis.Simple points

represent original settlements.Those

enclosed in circles are centers of

market areas of sizes indicated by

figures.

Ref: A.Losch, The Economics of Location

He further argued that the best

location would be that which would

command, the largest market area,

since this would bring in the highest

sales revenue. Point of largest sales

should be the correct location; place of

greatest profit is the right place.

References:

1.Cities,Space & Behavior: The Elements of Urban Geography: Leslie J.King & Reginald

G.Colledge

2.Location & Space Economy :Walter Isard

3.Internet